Pharos Energy has announced the signing of a farm-out to the El Fayum and North Beni Suef Concession to IPR. The proposed transaction will result in IPR taking over 55% working interest and operatorship in the El Fayum and North Beni Suef Concessions.
Pharos says it will be returning to drilling with an interim 3-well programme commencing in October to accelerate production enhancement ahead of farm-out partner resuming operatorship.
For the initial 57 well producer and injector program the investment funds required to develop the fields will become available following completion of the farm-out to IPR Lake Qarun Petroleum Co., a wholly owned subsidiary of IPR Energy AG.
Further, testing of the recently drilled Batran-1X exploration discovery well is expected in 4Q 2021. Parliamentary approval on the Third Amendment to the El Fayum Concession Agreement is awaited with the Amendment expected to be backdated to November 2020 and will increase contractor revenue take by c.20%.
Ed Story, President and Chief Executive Officer, commented:
‘We are delighted to announce the farm-out of our onshore Egypt position today. IPR is a well-regarded and experienced operator in Egypt and is perfectly positioned to effect the full field development and exploration programmes. We look forward to working with them to realise the full potential of these fields.
The signing of the Egyptian farm-out means that the medium term outlook for the Company is a return to free cash flow and ultimately to distributions to shareholders.’
The farm-out is planned for completion in the first quarter of 2022